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Mu Zeta posted:Fidelity has 0% ER funds now. Completely free. Yes but they might one day all of a sudden go "Hahahaha suckers. All expense ratios now 50%. $100k to transfer your money out. OWNED!!!" 
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Aug 8, 2018 21:19
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That's incredibly unlikely although their business model incentives such a decision on a much smaller scale.
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Aug 8, 2018 21:21
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Well yes, that's what the are all about.potatoducks posted:super unlikely
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Aug 8, 2018 21:28
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I'm afraid I don't understand, friend. Why say a dumb thing and then make a face? Bonds have never been funny to me either so you've got me stumped across the board!
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Aug 8, 2018 21:39
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It's okay man don't worry about it.
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Aug 8, 2018 21:43
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I almost never do Stay the course 
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Aug 8, 2018 21:44
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I just don't feel like chasing minimal gains jumping around when I could leave my stuff in one place forever. The difference between the accrued fees from leaving it in VTSAX versus FZROX is less than a percent of my final portfolio after 30 years. It's a rounding error. Edit: I looked at the prospectus, and this line in particular worries me a bit quote:The fund may not always hold all of the same securities as the Fidelity U.S. Total Investable Market Index℠. Geode may use statistical sampling techniques to attempt to replicate the returns of the Fidelity U.S. Total Investable Market Index℠ using a smaller number of securities. Statistical sampling techniques attempt to match the investment characteristics of the index and the fund by taking into account such factors as capitalization, industry exposures, dividend yield, P/E ratio, P/B ratio, and earnings growth. This is also worrying. quote:In addition to the principal investment strategies discussed above, Geode may also use various techniques, such as buying and selling futures contracts, swaps, and exchange traded funds, to increase or decrease the fund’s exposure to changing security prices or other factors that affect security values. Hoodwinker fucked around with this message at 22:23 on Aug 8, 2018 |
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Aug 8, 2018 21:49
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GoGoGadgetChris posted:Vanguard has incredibly low overhead, one side effect of which is garbage customer service.
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Aug 9, 2018 00:35
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Dik Hz posted:I don't know. My lone experience with Vanguard customer service was setting up a custodian-to-custodian transfer from an old Simple IRA, and a knowledgeable Vanguard rep picked up on the second ring with no menu or hold time. Vanguard customer service has been decent for me when I needed it, although they definitely won’t do any transfers for you, they walk you through it. As a comparison, when I call Fidelity for my 401k they’ll do basically everything for me. Vanguard’s apps have gotten better, but they def aren’t amazing. I kept trying to do a transfer and it never worked. Logged in on my laptop, fixed in 2 minutes.
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Aug 9, 2018 01:50
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I think it basically boils down to just stay wherever you are, it's probably fine. Fidelity is cheaper, Vanguard is nearly as cheap, neither is much to lose sleep over
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Aug 9, 2018 03:11
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baquerd posted:I gotta come clean here. I believe in Vanguard for the long term, but their competitors just have better experiences with lower prices for now, and I'm looking at switching my primary brokerage for retirement accounts. Maybe this is a loss leader for their competitors, or maybe this is a wakeup call to slim down their overhead. Later this month, Vanguard will allow nearly all ETF's (Vanguard or otherwise) to be traded for free. It will make Vanguard pretty much the best deal available. In cases where a competitor offers a lower priced ETF (like Schwab), you can just trade it from your Vanguard account for free. Their customer service has always been pretty decent, from my own experience.
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Aug 9, 2018 05:31
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Took the jump and I am finally moving my Roth IRA from T Rowe Price over to Vanguard. Should be going from a .35 ER to a .03 with admiral shares 
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Aug 9, 2018 13:07
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Related to all the 4.5% talk... I recently discovered that nearly everyone at my work who is 50+ uses the same financial guy. These are mostly people with highschool level education but have had well paying union jobs for decades, some engineers too, and they're on average in a pretty good place financially. Saving + pension + house equity in the >$1-1.5 MM range by retirement age, pretty much all on autopilot. Anyway I got to talking with a guy who's about 10 years out from retirement and discovered that this financial guy is charging an annual fee of 3% of assets under management. For everyone. It's bananaland. We're talking like at least 100 people at my company alone are with this guy. So I asked my coworker if he realized he's paying $30k/yr for this guy's advise and when I put it that way I could see the wheels start to turn. I pitched the idea to him that I could do what his guy does for half the price, and the more I think about it, I'm considering trying to get some sort of certification to try to poach this guys business at a more reasonable fee (say 1% [obviously still a rip off but better than 3% what the christ]). Has anyone considered opening up their own financial advisory firm? Bad/unethical idea?
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Aug 9, 2018 14:41
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spf3million posted:Related to all the 4.5% talk... I recently discovered that nearly everyone at my work who is 50+ uses the same financial guy. These are mostly people with highschool level education but have had well paying union jobs for decades, some engineers too, and they're on average in a pretty good place financially. Saving + pension + house equity in the >$1-1.5 MM range by retirement age, pretty much all on autopilot. I’ve considered going into finance advisor, the issue is what you’re addressing here: what’s the balance between making money and ripping off people. The argument of “they can do it without me,” can be a applied to a lot of things, but a percent like that guy above makes it add up quickly. On the flip side, most people also don’t want to pay a flat fee for financial advice. And especially because finance can go up and down short term, it’s pretty easy for someone to pay money, have whatever investment dip a bit, and get really mad about it.
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Aug 9, 2018 14:45
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I'm pretty sure financial advice is a fairly unregulated industry. Do you even need any certifications to do what you describe and help some people open up Vanguard stuff?
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Aug 9, 2018 14:46
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baquerd posted:Maybe this is a loss leader for their competitors, or maybe this is a wakeup call to slim down their overhead. The new funds have no fees. The company doesn't operate on unicorn farts. This is definitely a loss leader. As long as you only stay in their low fee/no fee funds though, you're coming out ahead. edit: whoops new page
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Aug 9, 2018 14:50
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I had a new baby a few weeks ago and because we live in America 2018 - I think it's time to set up a college account for the little guy - does anyone have good resources that provides an overview of 529's or other college savings programs so I can wrap my head around it before moving forward with it?
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Aug 9, 2018 15:44
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Something Offal posted:I'm pretty sure financial advice is a fairly unregulated industry. Do you even need any certifications to do what you describe and help some people open up Vanguard stuff? Really hope this is tongue in cheek. If you're going to offer any financial advice, you need to file with your state as an RIA. If you're going to collect loads or commissions, you will need to take the appropriate Series exams and have a registered broker/dealer sponsor you. You can relatively simply set up an RIA. There are off-the-shelf solutions that will help you file the necessary paperwork and pay the appropriate fees to hang your shingle. It's very doable as a side business if you have a decent population of folks to serve as a customer base. The hard part will be differentiating yourself from other advisors and justifying your fee. For your services, I'd suggest something more conservative like .3-.5% AUM fee. Or just have the guy buy you lunch and lay some wisdom on him.
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Aug 9, 2018 15:46
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Sab0921 posted:I had a new baby a few weeks ago and because we live in America 2018 - I think it's time to set up a college account for the little guy - does anyone have good resources that provides an overview of 529's or other college savings programs so I can wrap my head around it before moving forward with it? It depends on your state. Check to see if there's any state specific programs. If you don't have a state income tax (or it's not deductible), 529s aren't really that great. Here's a quick breakdown between 529 and UTMA accounts. https://www.savingforcollege.com/compare_savings_options/?assigned_to%5B%5D=0&assigned_to%5B%5D=5&hiddenField=vehicles&mode=Submit
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Aug 9, 2018 16:37
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TraderStav posted:Really hope this is tongue in cheek. It was a bit tongue in cheek, but it does seem like financial advice is less regulated than it should be at times.
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Aug 9, 2018 17:15
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Harry posted:It depends on your state. Check to see if there's any state specific programs. If you don't have a state income tax (or it's not deductible), 529s aren't really that great. Here's a quick breakdown between 529 and UTMA accounts. In Texas - so no state income tax - thanks for this.
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Aug 9, 2018 18:06
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Sab0921 posted:I had a new baby a few weeks ago and because we live in America 2018 - I think it's time to set up a college account for the little guy - does anyone have good resources that provides an overview of 529's or other college savings programs so I can wrap my head around it before moving forward with it? 529s can be pretty great depending on your state. It really depends on your income and progress towards your other savings goals. You shouldn't sacrifice progress towards retirement, saving for a house downpayment, or HSAs just for the 529. I live in a state with a great 529 program, but only put $100 a month towards it. I also put all the cash gifts from family members received after her birth into the 529, which has helped build a solid foundation. Also if you haven't done so, you should consider term life insurance. It can take a month or two to get everything set up. I think it is the #1 most important financial to-do after the birth of a first child.
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Aug 9, 2018 18:20
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laxbro posted:529s can be pretty great depending on your state. It really depends on your income and progress towards your other savings goals. You shouldn't sacrifice progress towards retirement, saving for a house downpayment, or HSAs just for the 529. I live in a state with a great 529 program, but only put $100 a month towards it. I also put all the cash gifts from family members received after her birth into the 529, which has helped build a solid foundation. This is basically what I came to write. 529's are absolute top-rung on the savings ladder, after things like fun life experiences for your family. Term life insurance so your family is not out on the street when you get hit by a bus is more important. We also do the deposits from family members into the 529 - so when the aunts and uncles send a check we just deposit it straight into the account. You even get a hilarious little deposit slip book you can send to the grandparents if they still believe in balancing a checkbook. We do $25/month into Fidelity's (New Hampshire) into their Index fund because I already have the rest of my money there. (lol the last few pages of neck bearding) Nevada is Vangaurd apparently which is another good choice. The minimum "automatic deposit" is fine and keeps the account there for the above aunts and uncles to shovel money into.
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Aug 9, 2018 18:27
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Your savings priorities are 1. Fun family experiences 2. 529 3. Other? Doesn't seem like you're agreeing with the post you quoted.
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Aug 9, 2018 18:32
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GoGoGadgetChris posted:Your savings priorities are Climbing a ladder not descending a ladder.  financial stability -> retirement -> paying your bills -> other goals (house? hsa?) -> enjoying your life -> 529 (whatever that big-flow-chart-o-savings is, 529 is the last thing in there in my book.) 529's are for rich folks to stuff money into, so unless your state offers really good benefits, are close to AMT land sorta income, or other tax games, I wouldn't bother.
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Aug 9, 2018 18:40
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laxbro posted:529s can be pretty great depending on your state. It really depends on your income and progress towards your other savings goals. You shouldn't sacrifice progress towards retirement, saving for a house downpayment, or HSAs just for the 529. I live in a state with a great 529 program, but only put $100 a month towards it. I also put all the cash gifts from family members received after her birth into the 529, which has helped build a solid foundation.
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Aug 9, 2018 18:44
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Does it let you pay for tuition out of state? One thing you may not want to do is lock your child into a specific state's schools, 18 years in advance of when they might be picking schools.
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Aug 9, 2018 18:51
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H110Hawk posted:Climbing a ladder not descending a ladder. Sorry sir, but the shape you were looking for is a pyramid
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Aug 9, 2018 18:53
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GoGoGadgetChris posted:Sorry sir, but the shape you were looking for is a pyramid he wants to hoard money not grain dude
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Aug 9, 2018 18:55
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Leperflesh posted:Does it let you pay for tuition out of state? One thing you may not want to do is lock your child into a specific state's schools, 18 years in advance of when they might be picking schools. The location of your 529 plan has zero bearing on where the kid may attend school.
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Aug 9, 2018 19:01
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GoGoGadgetChris posted:Sorry sir, but the shape you were looking for is a pyramid Ever since the 13th amendment this is just untenable. Docjowles posted:The location of your 529 plan has zero bearing on where the kid may attend school. This is not always true, some states (used to?) offer "tuition buy out" programs where you could pay in now and buy tuition at todays rates. Must be spent in that states public university system. Double check it before blindly depositing. Unless you have a specific tax incentive use NH or NV.
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Aug 9, 2018 19:01
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Leperflesh posted:Does it let you pay for tuition out of state? One thing you may not want to do is lock your child into a specific state's schools, 18 years in advance of when they might be picking schools. Yes, most 529s operate like HSAs. You submit distribution requests for qualified expenses. What qualifies beyond tuition depends on your state. What you're talking about is a "Pre-paid 529" for tuition at an instate school. At least in my state, it looks like you prepay by credit to protect against inflation and general tuition increases.
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Aug 9, 2018 19:04
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Heehee, man, both those pyramid jokes really got me. On 529s, do you guys worry at all that some combination of college, its costs, and its importance will change in the next 15 years and make your 529 balance less useful? I don't personally, and don't have any kids to worry about, but I'm curious if so. Sometimes I worry my HSA balance will go to waste on account of significant reform to our medical ca--hahahaha sorry, couldn't even get through that one. Real question on the 529 though. What if college changes? Or your kid can't or won't go? Are there provisions to get that money back?
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Aug 9, 2018 19:09
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Aah, OK. I have no kids, nor will I, so my understanding is all hearsay and second hand, but I felt like the question had been raised previously itt when we discussed 529s. My feeling is that I'd rather have unrestricted savings vs. restricted savings, but the tax benefit slightly outweighs that, unless the restrictions are overly restrictive.
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Aug 9, 2018 19:11
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A 529 made sense for us in the following scenario - 1) we've maxed all other tax advantaged retirement space 2) we have a child for whom we forecast large qualified expenditures (tuition or room/board) and 3) tax advantages to doing this level of savings. So yeah, we save up to the level of our state tax benefit and hopefully the returns (withdrawable tax free) will help for college.
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Aug 9, 2018 19:17
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I just transferred my old 401k to Vanguard because after leaving my old job the management fees went up. I'm fairly new to investing, previously I was able to answer a questionnaire about my preferred method of investing and it did my allocations automatically. I don't think Vanguard has this option, so what's the best resource for choosing how I purchase funds, stocks, and bonds?
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Aug 9, 2018 19:21
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GoGoGadgetChris posted:Heehee, man, both those pyramid jokes really got me. Bad posting is all I've got don't take it from me. This is why we're not saving at any kind of astronomical rate in the 529. Statistically our kid will have some kind of qualified expenditure, but I'm not trying to save up to put them through private school. I wound up not going to college, my wife did. I think as long as it's education related you can expense it (for example, trade school.) So if little timmy/susie wants to be a dental hygenist so long as we can convince them to go to an accredited school we can pay it out. 529s are a tool for the rich or HENRY folks (Think: The double doctor who constantly touts his hilariously high income here.) Photex posted:I just transferred my old 401k to Vanguard because after leaving my old job the management fees went up. I'm fairly new to investing, previously I was able to answer a questionnaire about my preferred method of investing and it did my allocations automatically. I don't think Vanguard has this option, so what's the best resource for choosing how I purchase funds, stocks, and bonds? Dirt simple: Pick the year you expect to retire, put your money in the target date fund that is closest to that year. Round up for higher risk, round down for lower.
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Aug 9, 2018 19:28
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Target retirement fund
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Aug 9, 2018 19:31
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The fundamental questions: •how long you’re going to be putting away money for? •how capable are you at ignoring market volatility / staying the course? A longer timeframe makes stocks have greater expected return. The personal ability to weather risk increases the odds that you won’t gently caress up your own portfolio; a lower risk tolerance will suggest a more conservative (read: bonds) allocation that have lower expected returns but more consistent performance.
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Aug 9, 2018 19:34
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Sab0921 posted:In Texas - so no state income tax - thanks for this. There was something called the Texas Tomorrow Fund at some point. Look to see if that or similar still exists. A 529 is basically absolutely last priority wise.
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Aug 9, 2018 19:51
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